CII OPPOSES ANNOUNCED HIKE IN POWER TARIFF IN THE STATE

The Kerala State Electricity Regulatory Commission’s decision to hike the power tariff over 30 % for all categories of consumers in the state will drastically hit the core industries in Kerala. Mr Umang Patodia, Chairman, Taskforce on Power, CII Kerala State Council and Managing Director, Patspin India Ltd stated that this will adversely affect the businesses, thereby shifting the burden to the general public, who are dependent on this sector.

The increased power tariff change has adversely affected the industrial operations of manufacturing sector in the state. Power is the major input for the manufacturing and MSME industry. Large scale manufacturing company’s consuming large scale power such as minerals, paper, textile etc are hardest hit. As it is, generally in Kerala, the cost of sourcing raw materials and source of employment is significantly higher,compared to the neighboring states.

Increase in power tariff will also drastically affect the sustenance and growth of manufacturing sector in Kerala and will most certainly lead to the eventual closure of many of the units. To support the growth and sustainability of existing industry, tariff shocks has to be avoided and any revision of power tariff must be in a graded manner over a 3 year period making it viable for the industry to survive.

Moreover, the current electricity tariff per unit is far higher than the cost of the same to the KSEB. This goes against the cross subsidy directions given by the Central Regulatory Authority.

CII is planning to request the Government of Kerala to come up with industry friendly manufacturing policy and Power Policies, which can facilitate industrial growth and also serve to attract investments into the state.With the main objective of the proposed Emerging Kerala being to showcase the investment opportunities available in Kerala; CII believes that the Government and the authorities need to ensure both the manufacturing and power policy which can attract both domestic and international investments to the state.

CII urges the Government to reconsider this drastic increase in electricity charge and to reduce the same in a manner as suggested above.